AAA OLX reaches Frontier with $89m investment

OLX reaches Frontier with $89m investment

OLX Group, the classified listings operator owned by media and e-commerce group Naspers, provided $89m in series C funding for Germany-based online automotive marketplace Frontier Car Group (FCG) today.

The investment, made through OLX’s corporate venturing unit, OLX Ventures, came weeks after FCG raised $41m in series B funding alongside $17m of debt financing.

Founded in 2016, FCG runs an e-commerce marketplace that allows drivers, dealers and fleets to buy and sell cars. The company operates in six countries, and its brands include the Mexico-based VendeTuAuto, the Indonesia-situated BeliMobilGue and CarFirst in Pakistan.

The OLX funding will support FCG’s expansion into new markets as well as a service where sellers can instantly receive cash for their vehicles. Sellers using FCG will also be able to list their cars on OLX’s platforms, which currently stretch across 40 countries.

Martin Scheepbouwer, chief executive of OLX, said: “Our mission at OLX Group is to make it super easy for users to buy or sell almost anything.

“When it comes to cars, FCG will help us to do just that, offering a more convenient service to our car sellers and buyers around the world. Convenience is the future of classifieds and we will drive it.”

Balderton Capital and TPG Growth co-led the series B round, which was disclosed at the start of this month, investing alongside Fraser McCombs Capital and Autotech Ventures.

The former two had also backed FCG’s $22m series A round in May 2017, investing with EchoVC+, New Enterprise Associates, Partech Ventures and undisclosed family offices.

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